Big down day for the Market due to the Coronavirus – BUD is looking very cheap at this level – so I sold options on Anheuser-Busch InBev (BUD) – here are the details of the trade:
- Sold: 5 March 20, 2020 Puts
- Strike Price: $68.00
- *Premium Collected: $990.00
If I am forced to buy the 500 shares, my entry price will be $66.02 per share – over a 43% discount to Anheuser-Busch InBev’s Morningstar Fair Value of $116.00 per share – providing a large Margin of Safety.
*Excludes transaction costs.
I guess I have to start drinking Bud again (or maybe Corona Beer, another brand they own).
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